China under pressure to retaliate as US tariffs hit harder and faster than expected

China under pressure to retaliate as US tariffs hit harder and faster than expected

Shein and Temu reportedly made up 30 % of the total size of the more than 1 billion boxes that China imported into the US in 2023, according to a report from the US parliamentary committee on China. &nbsp,

According to US Customs and Border Protection statistics, roughly 1.36 billion Chinese goods entered the nation in 2024. &nbsp,

Analysts anticipate that the move may be particularly problematic for smaller sellers who operate through Foreign e-commerce platforms, which directly target US consumers and consumers. This business model relies on ultra-fast, low-cost shipping to devalue US retailers. &nbsp,

These items are subject to customs delays, compliance challenges, and higher shipping costs as a result of the new regulations.

Exporters will likely see their packages being stopped at the border for a very long time as a result, according to Guo, adding that it will undoubtedly slow down the ( parcel screening ) process. They originally didn’t really care about this, which may cause a bigger pain.

According to EIU’s Su, who claims that the new levies may “ultimately possibly be passed on to US buyers half after part of the price is absorbed by US retailers, Chinese companies that already have “razor-thin” profit margins would have little space to bear extra costs. &nbsp,

Some Chinese companies have used free trade agreements and integrated production chains to avoid US tariffs over the years by rerouting shipments through Southeast Asian nations.

However, because nations in the region are also facing significant US tariffs today hitting both ends of this supply chain, that exit route will likely no longer be a” cost-effective solution.” &nbsp,

Rerouting Chinese imports may crash in nations like Vietnam, where they were originally partially rerouted and are now suffering greatly, according to Josef Gregory Mahoney, professor of politics and international relations at East China Normal University.

In the months to come, Mahoney said, Taiwanese companies will probably make moves to new markets. &nbsp,